In February 2009, monthly sales of passenger cars in India exceeded100,000 units
and has since grown rapidly to a record monthly high of 182,992 units inOctober 2009.
From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figurereaches 80% in Switzerland for example)
this progression is unlikely to stop in thecoming decade.
Congestion of Indian roads, more than market demand, will likely be thelimiting factor .
SIAMis the apex industry body representing all the vehicle manufacturers, home-grownand international, in India.
Starting its journey from the day when the first car rolled on the streets of Mumbai in 1898,the Indian automobile industry has demonstrated a phenomenal growth to this day. Today,the Indian automobile industry presents a galaxy of varieties and models meeting all possible expectations and globally established industry standards. Some of the leadingnames echoing in the Indian automobile industry include Maruti Suzuki, Tata Motors,Mahindra and Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors in additionto a number of others.During the early stages of its development, Indian automobile industry heavily dependedon foreign technologies. However, over the years, the manufacturers in India have startedusing their own technology evolved in the native soil. The thriving market place in thecountry has attracted a number of automobile manufacturers including some of the reputedglobal leaders to set their foot in the soil looking forward to enhance their profile and prospects to new heights. Following a temporary setback on account of the globaleconomic recession, the Indian automobile market has once again picked up a remarkablemomentum witnessing a buoyant sale for the first time in its history in the month of September 2009.The automobile sector of India is the seventh largest in the world. In a year, the countrymanufactures about 2.6 million cars making up an identifiable chunk in the world’s annual production of about 73 million cars in a year. The country is the largest manufacturer of motorcycles and the fifth largest producer of commercial vehicles. Industry experts havevisualized an unbelievably huge increase in these figures over the immediate future. Thefigures published by the Asia Economic Institute indicate that the Indian automobile sector is set to emerge as the global leader by 2012. In the year 2009, India rose to be the fourthlargest exporter of automobiles following Japan, South Korea and Thailand. Experts statethat in the year 2050, India will top the car volumes of all the nations of the world withabout 611 million cars running on its roads.At present, about 75 percent of India’s automobile industry is made up by small cars, withthe figure ranking the nation on top of any other country on the globe. Over the next two or three years, the country is expecting the arrival of more than a dozen new brands makingcompact car models.